This invention relates to bidirectional communication systems for transmitting information over telephone lines. More particularly, this invention relates to systems for bidirectionally transmitting information between a remote site and a central location and is specifically directed to a system for enabling securities information to be requested, and securities transactions to be automatically executed, both via telephone.
Many systems are known which are capable of transmitting information between a conventional telephone handset at a remote location and a computer installation at a central location. Such systems typically include a desk console unit provided with a conventional acoustic coupling mechanism which enables manually generated data to be converted into electronic signals having parameters which are compatible with the transmission capabilities of conventional telephone lines. Such installations are advantageous in that they require no permanent connection between the remote data terminal and the remote telephone lines, and thus are convenient to install and operate. With advancing technology the physical size of such units has been reduced to truly portable size, such as the MCM portable data terminal sold by Micon Industries of Oakland, California.
In the specific field of the securities industry, systems of this type are known and are used to garner information relating to securities transactions, e.g. the volume of securities sold on a specific exchange on a given day, the current selling price for a given security, the bid and ask price for securities traded over the counter, and other information of interest to investors. As used herein, the term "securities" includes corporate stocks, bonds, options, commodities, and other choses in action representing ownership of businesses or commodities and evidenced by certificates. Such securities have standard alpha symbols recognizable by investors as specifying those securities, e.g. GM for General Motors, ATT for American Telephone and Telegraph, etc.
In a typical securities information request/supply service, of which the MARKET LINE system is representative, a securities information request is originated by the user by endigiting a unique numeric code which identifies the given security into a desk console unit by means of a numeric keyboard. The information request is electronically formated and converted into acoustical signals by the desk unit. The acoustical signals are coupled to a telephone handset, converted to electrical signals by the telephone handset and transmitted by standard telephone lines to a central computer. Upon receipt, the computer performs a table look up of the information and transmits electrical signals representative of this information over the telephone lines to the telephone handset, where the signals are converted to acoustical signals and coupled to the desk unit. The acoustic signals are converted to electrical signals by the desk console unit, and are formatted and displayed on a visible display device. While such systems are useful in providing relatively current information regarding securities in general, they suffer from the disadvantage that given securities must be specified by a purely numeric code. Thus, rather than entering the ordinary alpha securities symbols, with which the many investors are familiar--as may be done for example, with the hard-wired TELEQUOTE III system supplied by Bunker-Ramo Company,--a unique numeric multi-digit code must be endigited by the user to request the desired information. This requires that the user either memorize those codes corresponding to securities of interest, or carry the code book on his person, either of which can cause substantial inconvenience to the investor. More importantly, in spite of the existence of relatively sophisticated bidirectional data communication systems employing telephone lines and acoustic couplers, no system has yet been devised which enables an investor to automatically effect securities transactions from a home or business telephone. Thus, to date it is still necessary to personally contact an authorized representative of a brokerage house, either in person or via the telephone, the telegraph or by letter, in order to execute a transaction involving securities. This requires the personal presence and efforts of a licensed representative of the brokerage house, which adds an unnecessary cost component to the price of the transaction. Moreover, estimates have indicated that nearly 5% of all securities transaction orders placed with brokerage houses are erroneously executed due to human error in processing such orders. In addition, execution of orders is frequently delayed by human factors. Also, trading periods during which securities transactions may be effected are severely limited to the five normal working days of the week and to a few hours of each trading day. All of the above factors tend to restrict, and frequently result in complete loss of, profit opportunities.